Redwood City School District 2018-19 Proposed Budget June 27, 2018 - PowerPoint PPT Presentation

Redwood City School District 2018-19 Proposed Budget June 27, 2018

District Enrollment Trends 2018-19 2019-20 2020-21 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 (projected) (projected) (projected) District enrollment 9116 8961 8848 8414 7954 7723 7527 7358 7236 Change from prior year -155 -113 -434 -460 -231 -196 -169 -122 Enrollment projections assume a slowing down of declining enrollment due to • charters having filled out grade levels to be served If charters expand enrollment laterally or if the effect of gentrification • accelerates, there will be greater downward pressures on enrollment The new downtown apartments and other new housing do not currently • generate K-8 students, but there will come a time in which they do

Other Factors Impacting the General Fund $19,000,000 Unrestricted Contribution to Special Education $17,000,000 $15,000,000 $13,000,000 $11,000,000 $9,000,000 $7,000,000 $5,000,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 (budgeted) 2017-18 Estimated 2018-19 Proposed Actuals Description Object Codes Budget 2019-20 2020-21 3Employee Benefits: a. STRS 3100 7,503,775 8,404,305 9,743,332 10,259,663 b. PERS 3200 2,707,131 3,108,600 3,694,362 4,236,528 c. FICA and Medicare 3300 1,993,318 1,989,679 1,954,590 1,983,909 d. Health and Welfare 3400 6,820,458 7,056,889 7,303,880 7,559,516 e. Unemployment 3500 37,693 38,021 39,427 39,868 f. Worker Comp 3600 1,798,150 2,259,048 2,358,372 2,393,747 g. Retiree Benefits 3700 976,148 976,148 976,148 976,148 h. Cost of Living Adjustments - - - - i. Other Benefits 3900 678,500 732,500 732,500 732,500 j. Total Benefits 22,515,173 24,565,190 26,802,610 28,181,879

Rising Pension Obligations Employer Contribution Rates 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-02 PERS 11.77% 11.85% 13.05% 15.53% 18.06% 20.80% 23.50% 24.60% STRS 8.88% 10.73% 12.58% 14.43% 16.28% 18.13% 19.10% 19.10% General Fund Contribution to Pension Plans 2019-20 2020-21 2014-15 2015-16 2016-17 2017-18 2018-19 (projected) (projected) STRS $5,269,206 $6,623,381 $7,039,453 $7,503,775 $8,404,305 $9,743,332 $10,259,663 PERS $1,621,559 $1,803,910 $2,184,490 $2,707,131 $3,108,599 $3,694,362 $4,236,528 Total Contribution $6,890,765 $8,427,291 $9,223,943 $10,210,906 $11,512,904 $13,437,694 $14,496,191

Moving Forward General Fund Projections (assuming no RDA, no reductions) Total Ending Unrestricted Total Unrestricted Unrestricted Revenue Expenditures Difference Fund Balance 2015-16 $ 79,827,501 $ 74,821,373 $ 5,006,128 $ 9,897,921 2016-17 $ 78,460,016 $ 77,927,460 $ 532,556 $ 10,430,477 2017-18 (estimated actuals) $ 75,236,224 $ 79,301,523 $ (4,065,299) $ 6,365,178 2018-19 (projected w/o RDA) $ 74,785,506 $ 78,242,591 $ (3,457,085) $ 2,908,093 2019-20 (projected w/o RDA; no reductions) $ 71,893,825 $ 81,587,726 $ (9,693,901) $ (6,785,808) 2020-21 (projected w/o RDA; no reductions ) $ 72,382,818 $ 83,968,749 $ (11,585,931) $ (18,371,739) 2018-19 Proposed General Fund Budget Plan Scenario 2 (updated) Unrestricted Beginning Total Transfer of General Fund Total Ending Unrestricted On-going RDA Unrestricted RDA funds budget Unrestricted Unrestricted Balance funds Revenue from Fund 25 reduction Expenditures Fund Balance 2017-18 (estimated) $ 10,430,477 $ 75,236,224 $ (79,301,523) $ 6,365,178 2018-19 (proposed) $ 6,365,178 $ 2,400,000 $ 74,785,506 $ (78,242,591) $ 5,308,093 2019-20 (projected) $ 5,308,093 $ 2,400,000 $ 77,293,825 $ 3,000,000 $ 4,000,000 $ (77,587,726) $ 5,014,192 2020-21 (projected) $ 5,014,192 $ 2,400,000 $ 77,782,818 $ 3,000,000 $ 2,000,000 $ (77,968,749) $ 4,828,261

2018-19 Proposed General Fund Budget Plan (cont.) • Beginning in 2018-19 the on-going RDA funds will remain in the general fund and be transferred to the unrestricted side of the budget. Staff needs to continue to monitor how this is accomplished through SACS coding • $3 million of one time funds RDA funds (Fund 25) will be utilized in 2019-20 and an additional $3 million will be used in 2020-21. This will leave a $2.6 million balance available in 2021-22 • The district will make $4 million of budget reductions in 2019-20 and an additional $2 million in 2020-21 (This represents a reduction in budget cuts in 2020-21 from the May 30 presentation) • The district will still have a $3 million structural deficit going into 2021-22; however, its remaining one time RDA funds ($2.6 million) will be available • The negotiated salary increases (3.5% - 2018-19, 3.5% - 2019-20) are built into the budget projections, however, the budget forecast has not built any additional increase into the 2020-21 budget. A negotiated salary increase for 2020-21 will impact the projected ending balance • District will undertake process this Fall to identify the $4 million of 2019-20 reductions. These will be listed on the First Interim Budget (Dec 2018)

2018-19 Unrestricted Multi-year Projection 2017-18 Estimated 2018-19 Description Object Codes Actuals Proposed Budget 2019-20 2020-21 Revenues and Other Financing Sources: LCFF/Revenue Limit: Base 8010-8099 $62,620,047 $63,930,824 $63,997,212 $64,414,191 LCFF/Revenue Limit Supp/Conc 8010-8099 8,997,706 8,169,070 7,726,348 7,760,544 Federal Revenues 8100-8299 - - - - Other State Revenues 8300-8599 2,551,324 3,931,734 1,416,387 1,454,205 Other Local Revenues 8600-8799 1,067,147 1,153,878 1,153,878 1,153,878 Other Financing Sources 8900-8999 (18,046,437) (16,765,903) (16,776,388) (17,388,121) Transfer In from Fund 25 (one time RDA funds) - - 3,000,000 3,000,000 Total Revenues and Other Financing Sources 57,189,787 60,419,603 60,517,437 60,394,697 Expenditures and Other Financing uses: Certificated Salaries 1000-1999 a. Base Salaries 30,164,537 30,940,323 30,940,323 32,503,583 b. Projected Step and Column Adjustment - 464,105 487,554 c. Cost of Living Adjustment - - 1,099,155 - d. Other Adjustments/ Reduction Due to Reduction in Enrollmen - - - - e. Total Certificated Salaries 30,164,537 30,940,323 32,503,583 32,991,137 Classified Salaries 2000-2999 a. Base Salaries 9,324,601 9,295,329 9,295,329 9,764,975 b. Projected Step and Column Adjustment - 139,430 146,475 c. Cost of Living Adjustment - - 330,217 - d. Other Adjustments - - - - e. Total Classified Salaries 9,324,601 9,295,329 9,764,975 9,911,450 Employee Benefits: a. STRS 3100 4,152,254 4,883,634 5,892,900 6,301,307 b. PERS 3200 1,485,445 1,719,157 2,031,115 2,329,191 c. FICA and Medicare 3300 1,238,930 1,248,306 1,218,323 1,236,597 d. Health and Welfare 3400 4,718,398 4,781,374 4,948,722 5,121,927 e. Unemployment 3500 29,748 30,120 31,134 31,451 f. Worker Comp 3600 1,283,798 1,610,940 1,693,786 1,719,192 g. Retiree Benefits 3700 976,148 976,148 976,148 976,148 h. Cost of Living Adjustments - - - - i. Other Benefits 3900 422,500 475,500 475,500 475,500 j. Total Benefits 14,307,221 15,725,179 17,267,627 18,191,314 Books and Supplies 4000-4999 2,874,022 1,088,021 1,088,021 1,088,021 Services and Other Operating Expenditures 5000-5999 5,420,624 5,247,617 5,453,879 5,665,453 Capital Outlay 6000-6999 25,367 19,500 19,500 19,500 7100-7299, Other outgo 7400-7499 310,930 318,393 318,393 318,393 Indirect costs 7300 (1,619,182) (1,604,640) (1,604,640) (1,604,640) Other Financing Uses 7600-7699 446,966 446,966 - Budget Cuts (2019-20) - - (4,000,000) (4,000,000) Budget Cuts (2020-21) (2,000,000) Other Adjustments - - - - Total Expenditures and Financing Uses 61,255,086 61,476,688 60,811,338 60,580,628 Net Increase (Decrease) in Fund Balance (4,065,299) ($1,057,085) ($293,901) ($185,931) Fund Balance Net Beginning Balance 10,430,477 6,365,178 5,308,093 5,014,192 Adjustment to Beginning Balance - - - - e. Total Components of Ending Fund Balance 6,365,178 5,308,093 5,014,192 4,828,261 Available Reserves General Fund: Revolving Cash/Stores 80,000 80,000 80,000 80,000 Legally Restricted/Carryover - - - - Assigned for Food Service Audit Finding Payback to F13 446,966 - - - Assigned for Future Textbook Adoption - Assigned for Substitute Sick Leave Allocation - 32,400 32,400 32,400 Assigned for Health Care Reform Implementation - 250,000 250,000 250,000 Designated for Economic Uncertainties 9770 3,076,249 3,012,290 2,945,499 2,953,502 Assigned for Board Mandated Reserve 9790 2,761,963 1,933,403 1,706,293 1,512,359 Undesignated/ Unappropriated Amount 9790 - 0 0 0 Total Available 6,365,178 5,308,093 5,014,192 $4,828,261